Note:

This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

April 13, 2021

Financial Results for FY2020 Q3
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:

Sansan, Inc.
Tokyo Stock Exchange4443
https://www.corp-sansan.com/
Chikahiro Terada, Representative Director & CEO
Muneyuki Hashimoto, Director, CFO, Managing Executive (Finance & Accounting
Department)
TEL:+81-3-6758-0033
Scheduled date to file quarterly securities report:
April 13, 2021
Scheduled date to commence dividend payment:–
Preparation of supplementary materials on financial results:
Yes
Holding of financial results meeting:Yes (for institutional investors andanalysts)(Millions of yen with fractional amounts rounded down, unless otherwise noted)

1. Consolidated financial results for the first nine months of the fiscal year ending May 31, 2021
(from June 1, 2020 to February 28, 2021)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended
February 28, 2021
February 29, 2020

Nine months ended
February 28, 2021
February 29, 2020

Operating profit

Millions of yen% Millions of yen

11,753
9,671

Note: Comprehensive income(Percentages indicate year-on-year changes.)

21.5
31.4

% Millions of yen

823
193

Profit attributable toowners of parent

Ordinary profit

324.5
–

479
81

% Millions of yen

490.4
–

413
(94)

Nine months ended February 28, 2021: ¥400 million [–%]
Nine months ended February 29, 2020: ¥(96) million [–%]

Basic earnings per
share

Diluted earnings
per share

Yen

Yen

13.29
(3.05)

13.12–

Note: Diluted earnings per share for the nine months ended February 29, 2020 is not stated because, although potential
shares exist, basic loss per share was recorded.

(2) Consolidated financial position
Total assets
As ofFebruary 28, 2021
May 31, 2020
Reference:

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

20,232
22,819

11,091
10,55254.5
46.2

EquityAs of February 28, 2021:
As of May 31, 2020:¥11,032 million¥10,541 million%––

2. Cash dividends
Annual dividends
First quarter-end

Second quarter-end Third quarter-end

Yen

Fiscal year ended
May 31, 2020
Fiscal year ending
May 31, 2021

Yen

Fiscal year-end

Yen

–

0.00

–

–

0.00

–

Fiscal year ending
May 31, 2021
(Forecast)
Note: Revisions to the forecast of cash dividends most recently announced: None

Total

Yen

Yen

0.00

0.00

0.00

0.00

3. Consolidated earnings forecasts for the fiscal year ending May 31, 2021 (from June 1, 2020 to
May 31, 2021)
Net sales

Fiscal year ending
May 31, 2021

(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings perowners of parent
share

Operating profit

Millions ofyen%Millions ofyen%Millions ofyen

15,767to
16,302

18.0
to
22.0

757
to
1,010

0.0
to
33.4

–

%

–

Millions of
yen

–

%

–

Yen

–

Notes: 1. Revisions to the earnings forecasts most recently announced: None
2. Although the Company is expecting to record a surplus in both ordinary profit and profit attributable to owners ofparent, it is difficult to make a precise forecast. Accordingly, the Company will refrain from disclosing a concrete
forecast at this point in time.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Application of specific accounting for preparing the quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes in accounting policies due to revisions to accounting standards and other regulations:Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: Yes
d. Restatement: None
(4) Number of issued shares (Common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of February 28, 2021

31,165,234 shares

As of May 31, 2020

31,138,853 sharesb. Number of treasury shares at the end of the period
As of February 28, 2021

40 shares

As of May 31, 2020–

c. Average number of outstanding shares during the period
For the nine months ended February 28, 2021

31,139,989 shares

For the nine months ended February 29, 2020

30,857,908 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters
Forward-looking statements, including the consolidated forecasts stated in these materials, are based on
information currently available to the Company and certain assumptions deemed reasonable. Results
may differ materially from the consolidated forecasts due to various factors.

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q3

Attached Material
Index
1. Qualitative information on quarterly consolidated financial results ......................................................... 2(1) Explanation of operating results ............................................................................................................ 2(2) Explanation of financial position ........................................................................................................... 4(3) Explanation of consolidated earnings forecasts and other forward-looking statements ........................ 4
2. Quarterly consolidated financial statements and significant notes thereto ............................................... 5(1) Quarterly consolidated balance sheet .................................................................................................... 5(2) Quarterly consolidated statements of income and comprehensive income ........................................... 7
Quarterly consolidated statement of income ......................................................................................... 7
Quarterly consolidated statement of comprehensive income ................................................................ 8(3) Notes to the quarterly consolidated financial statements....................................................................... 9(Notes on premise of going concern)..................................................................................................... 9(Notes on significant changes in the amount of shareholders’ equity) .................................................. 9(Segment information, etc.) ................................................................................................................... 9(Significant events after reporting period) ........................................................................................... 10- 1 -Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q3

1. Qualitative information on quarterly consolidated financial results(1) Explanation of operating results
Under the mission of “Turning encounters into innovation” and the vision of “Become business
infrastructure,” the Group is developing services tied to solving various issues that companies andbusiness people face by using new approaches that combine “technology and data-input-based businesscard digitization systems” with “cloud software.”In the first nine months of the fiscal year ending May 31, 2021, the Group engaged in initiatives suchas strengthening the sales structure, including human resources, in order to realize continuous growthof net sales. Furthermore, the Group promoted the expanded use of the “Virtual Cards” function usable
within “Sansan,” a B2B business card-based contact management service and “Eight,” a business cardmanagement app. Additionally, we focused on the launch of “Bill One,” an online invoice receiving
solution.
As a result, net sales totaled ¥11,753,209 thousand (up 21.5% year on year) in the period under review,and despite a slight negative effect from the declaration of a state of emergency issued in some areas ofJapan in January 2021, results were overall solid. Gross profit totaled ¥10,321,127 thousand (up 24.1%
year on year), and gross profit margin was 87.8% (up 1.8 points year on year). All profit items
following operating profit improved due to the large improvement in profit margin following increased
net sales, despite an increase in advertising expenses and personnel expenses associated with theimplementation of aggressive growth strategies. Operating profit was ¥823,156 thousand (up 324.5%
year on year), ordinary profit was ¥479,331 thousand (up 490.4% year on year), and profit attributableto owners of parent was ¥413,870 thousand (compared to loss attributable to owners of parent of¥94,154 thousand in the same period of the previous fiscal year).
Results by segment are as follows.
Our services of each business, our business models, our competitive advantages, etc. are described on
the following IR section of the Company’s website. Please refer to the URL below for details.
IR section (description of Business Information):
https://ir.corp-sansan.com/en/ir/management/businessinformation.html(i) Sansan Business
The Company is developing services in the B2B business card management service market. As theCompany has grown, this market has seen 18-fold expansion from 2010 to 2018. The Sansan
Business, operated by the Company, holds an 83.5% share (Note 1.) in this market. Moreover,further expansion of the size of this market is continuing, which is mainly a result of recent changes
to employee working styles like remote work due to the spread of COVID-19, new ways ofthinking toward digital transformation, and greater attention being attracted to the SaaS (Software
as a Service) products. As for the digital transformation market, its worth in 2030 is forecasted tobe ¥3,042.5 billion (an increase of ¥2,251.3 billion since 2019) (Note 2.), while the SaaS market in
Japan is forecasted to reach ¥1,117.8 billion by 2024 (an increase of ¥516.2 billion since 2019)(Note 3.).
For the period under review, the Company continued to engage in initiatives, such as strengthening
the sales structure through strategic hiring and expanding use of “Virtual Cards” function, aimed atfurther increasing the number of subscriptions and the monthly sales per subscription for “Sansan.”While the spread of COVID-19 negatively affected the acquisition of new subscriptions, we
succeeded in enhancing our sales system and steadily acquired new customers among major
manufacturers and medium to small enterprises. As a result, the number of “Sansan” subscriptions
at the end of the period under review increased steadily to 7,523, up 14.2% year on year. In
addition, monthly sales per subscription rose only slightly to ¥167 thousand, up 2.5% year on year
due to sluggishness in some sales comprised of fees for the service of providing “Sansan” during
the initial adoption period as a result of the effect of COVID-19. Furthermore, as a result ofcarrying out ongoing initiatives to expand use among existing customers to achieve a stronger- 2 -Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q3

customer foundation, the average monthly churn rate over the past 12 months (Note 4.) was 0.67%(an increase of 0.11 points year on year), maintaining a low churn rate of below 1% despite
COVID-19 pandemic.
As a result, net sales totaled ¥10,651,094 thousand (up 19.3% year on year), of which recurring net
sales (fixed revenue) in “Sansan” totaled ¥10,100,598 thousand (up 24.6% year on year) in the
period under review. Segment profit totaled ¥4,528,774 thousand (up 40.0% year on year).
Notes:1. Based on “Latest trends in business card management services and sales services[SFA/CRM/online business card exchange]” by Seed Planning, Inc.
2. Based on “2020 Outlook of the Digital Transformation Market” by Fuji Chimera
Research Institute
3. Based on “2020 New Software Business Markets” by Fuji Chimera Research Institute
4. Ratio of decrease in monthly fees associated with subscription cancellations to totalmonthly fees for existing subscriptions for “Sansan.”(ii) Eight BusinessIn the Eight Business, the Company bases the business on the business card management app“Eight” that enables users to use the profile management and business card management features at
no cost. On top of this, the Company provides the B2C services, “Eight Premium,” for individuals
who want access to extra user functions and the B2B services such as “Eight Company Premium,”a service that allows the sharing of business cards registered on “Eight” within a company, “EightAds,” a service that enables advertisements to be disseminated to “Eight” users, “Meets,” abusiness event that increases productivity by efficiently matching buyers and sellers, and “Eight
Career Design,” a recruitment related service that enables hiring companies (corporate client users)
to approach job seekers (individual users) on the job search platform.
In the period under review, the Company worked on strengthening monetization of the B2B service
through “Eight Company Premium” and other methods. As a result, the number of “Eight Company
Premium” subscriptions at the end of the period under review totaled 2,132, an increase of 57.5%
year on year. The number of “Eight” users (Note 5.) totaled 2.86 million, an increase of 0.2 million
year on year. Additionally, results from our consolidated subsidiary logmi, Inc. (“logmi”) began tocontribute to results in September 2020 (recorded in the segment’s B2B services sales).
As a result, net sales for the period under review totaled ¥1,104,415 thousand (up 49.1% year onyear), of which net sales from B2C services totaled ¥221,820 thousand (up 1.9% year on year), andnet sales from B2B services totaled ¥882,595 thousand (up 68.8% year on year). Segment loss wasrecorded at ¥538,710 thousand (compared to segment loss of ¥715,289 thousand in the same periodof the previous fiscal year) due to being in the phase in which upfront investments were being
made to increase future profitability.
Note: 5. Number of confirmed users who registered their business card to their profile after
downloading the application
Net sales and part of cost of sales related to “Bill One”, the online invoice receiving solution
launched in May 2020, are allocated to each segment based on internally established rules, while
the rest of cost of sales and all selling, general and administrative expenses are recorded ascorporate expenses that are not allocated to each segment.
In the period under review, the number of subscriptions grew steadily by 86.5% compared to theend of the previous quarter as a result of strengthening the sales structure and advertising activities
centered on TV commercials to realize the growth of “Bill One.” Going forward, we aim to havemore than 1,000 subscriptions by the end of the fiscal year ending May 31, 2022 by promoting
human resource recruitment, advertising activities, and service improvements, etc.

- 3 -Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q3(2) Explanation of financial position
AssetsTotal assets at the end of the third quarter of the fiscal year ending May 31, 2021 were ¥20,232,511
thousand, down ¥2,587,256 thousand from the end of the previous fiscal year. This was primarily due
to a decrease of ¥2,154,945 thousand in cash and deposits, a decrease of ¥930,823 thousand ininvestment securities, an increase of ¥190,680 thousand in goodwill recorded as a result of making
logmi a subsidiary through the acquisition of its shares, and an increase of ¥105,981 thousand indeferred tax assets.
Liabilities
Total liabilities at the end of the quarter under review were ¥9,141,085 thousand, down ¥3,126,061
thousand from the end of the previous fiscal year. This was primarily due to a decrease of ¥2,744,750
thousand in long-term borrowings, a decrease of ¥588,044 thousand in advances received fromreceiving a lump-sum payment of contract term fees from customers, and an increase of ¥489,015
thousand in accounts payable - other.
Net assets
Net assets at the end of the quarter under review were ¥11,091,426 thousand, up ¥538,805 thousand
from the end of the previous fiscal year. This was primarily due to an increase of ¥413,870 thousand inretained earnings due to recording of profit attributable to owners of parent.
(3) Explanation of consolidated earnings forecasts and other forward-looking statements
Although operating profit for the first nine months of the fiscal year ending May 31, 2021 has alreadyexceeded the lower limit of the forecasts range, the full-year earnings forecasts announced at the
beginning of the fiscal year remain unchanged, as we plan to consider and implement investments toachieve medium- to long-term growth in the fourth quarter.

- 4 -Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q3

2. Quarterly consolidated financial statements and significant notes thereto(1) Quarterly consolidated balance sheet(Thousands of yen)
As of May 31, 2020
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Software
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Leasehold deposits
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets- 5 -As of February 28, 2021

12,815,225
441,060
410,582
176,945(3,621)
13,840,192

10,660,280
442,953434,513140,569(4,630)11,673,686

414,467

531,461

925,803–
261
926,064

1,007,208
190,680164
1,198,052

6,941,596
549,412145,1852,850
7,639,043
8,979,576
22,819,768

6,010,773
560,383
251,166
6,988
6,829,311
8,558,825
20,232,511

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q3(Thousands of yen)
As of May 31, 2020
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Advances received
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets- 6 -As of February 28, 2021

102,922
20,0001,267,490
596,265
225,471429,584
5,289,822
289,551
114,449
8,335,558

108,926
200,000
1,171,872
1,085,280
103,486
224,361
4,701,778
173,612
188,270
7,957,588

3,892,598
38,9903,931,588
12,267,147

1,147,847
35,6491,183,497
9,141,085

6,236,650
3,977,043
344,184–
10,557,879

6,281,556
4,021,948
758,054(262)
11,061,297–(15,921)(15,921)
10,663–
10,552,621
22,819,768(23,301)(5,876)(29,178)
54,887
4,419
11,091,426
20,232,511

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q3(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statement of income(Thousands of yen)
Nine months ended
February 29, 2020
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest and dividend income
Cancellation penalty income
Subsidy income
Gain on sales of investment securities
Gain on investments in investment partnerships
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share issuance costs
Stock market listing expenses
Commission expenses
Foreign exchange losses
Share of loss of entities accounted for using equity
methodPenalty loss on cancellation of rental contracts
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Loss on cancellation of events
Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit (loss) attributable to owners of parent- 7 -Nine months ended
February 28, 2021

9,671,494
1,357,551
8,313,942
8,120,038
193,904

11,753,209
1,432,082
10,321,127
9,497,971
823,156

1,590
2,149
–
–
–
921
4,660

536
3,249
5,295
32,8972,802
933
45,714

10,32928,102
15,04919,457
1,309

19,527––
24,135
1,433

37,914

232,439–
5,215
117,378
81,186

92,95319,049389,538
479,331

6,421
37,85454,087
98,363(17,177)
76,977–76,977(94,154)–(94,154)

3,798
–
–
3,798
475,533
167,775(105,981)
61,794
413,739(130)
413,870

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q3

Quarterly consolidated statement of comprehensive income(Thousands of yen)
Nine months ended
February 29, 2020
Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 8 -Nine months ended
February 28, 2021

(94,154)413,739–(1,990)(1,990)(96,145)(23,301)
10,044(13,256)
400,482(96,145)

400,613–(130)

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q3(3) Notes to the quarterly consolidated financial statements(Notes on premise of going concern)
Not applicable.
(Notes on significant changes in the amount of shareholders’ equity)
Not applicable.
(Segment information, etc.)[Segment information]
Ⅰ

First nine months of the fiscal year ended May 31, 2020 (from June 1, 2019 to February 29,
2020)
1. Information on the amount of sales and profit (loss) for each reportable segment
Reportable segments
SansanBusiness

Net sales
Sales to external customers
Intersegment sales or transfers

8,930,916–

Total
Segment profit (loss)

Eight Business

Total

740,577–

9,671,494–

8,930,916

740,577

3,235,948(715,289)(Thousands of yen)Amount in thequarterly
Adjustments
consolidated(Note) 1
financialstatement(Note) 2––

9,671,494–

9,671,494–

9,671,494

2,520,658(2,326,754)

193,904

Notes: 1. The adjustments stated for segment profit (loss) of negative ¥2,326,754 thousand comprises the amounts ofcorporate expenses not attributable to any reportable segment and mostly consists of general and administrative
expenses.
2. Segment profit (loss) is adjusted with operating profit in the quarterly consolidated statement of income.

2. Information on impairment loss of non-current assets or goodwill, etc. for each reportablesegment(Significant impairment loss on non-current assets)
As corporate expenses not belonging to the Sansan Business, Eight Business and any reportablesegment, the Company reduced the carrying amounts for software to their recoverable amounts
and recorded the amounts of reduction in impairment loss.
The relevant amounts recorded in impairment loss for the nine months ended February 29,2020 were ¥6,387 thousand for the Sansan Business, ¥9,648 thousand for the Eight Businessand ¥21,818 thousand for corporate expenses not belonging to any reportable segment.

- 9 -Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q3

Ⅱ First nine months of the fiscal year ending May 31, 2021 (from June 1, 2020 to February 28,
2021)
1. Information on the amount of sales and profit (loss) for each reportable segment
Reportable segments
SansanBusiness

Eight BusinessTotal

Net sales
Sales to external customers
Intersegment sales or transfers

10,651,094–

1,102,115
2,300

11,753,209
2,300

Total

10,651,094

1,104,415

Segment profit (loss)

4,528,774(538,710)(Thousands of yen)Amount in thequarterly
Adjustments
consolidated(Note) 1
financialstatement(Note) 2–(2,300)11,753,209–

11,755,509(2,300)11,753,209

3,990,064(3,166,908)

823,156

Notes: 1. The adjustments stated for segment profit (loss) of negative ¥3,166,908 thousand comprises the amounts ofcorporate expenses not attributable to any reportable segment and mostly consists of general and administrative
expenses.
2. Segment profit (loss) is adjusted with operating profit in the quarterly consolidated statement of income.

2. Information on impairment loss of non-current assets or goodwill, etc. for each reportablesegment(Significant change in goodwill amount)
During the first quarter of the fiscal year ending May 31, 2021, goodwill was recorded in the“Eight Business” segment due to the inclusion of logmi in the scope of consolidation as aconsolidated subsidiary through the purchase of that company’s shares. In the nine months
ended February 28, 2021, the resulting increase in goodwill amounted to ¥190,680 thousand.
(Significant events after reporting period)
Not applicable.

- 10 -